Travel and entertainment expenditure: tipping
Intent and objectives
The following guidelines details RMIT’s position in respect of tipping or gratuity payments on travel and entertainment expenditure. All employees who undertake business related travel and incur this type of expenditure must make themselves familiar with the requirements of this document
Generally tipping or gratuity payments relate to the quality of service provided. Unless the payment relates to an ‘approved tip’, any expenditure made in relation to the service provided is at the personal discretion of the staff member. Accordingly, the payment/expenditure must not be reimbursed by RMIT or incurred on the staff member’s corporate credit card.
Approved tipping or gratuity payments relate to additional expenditure incurred upon services in countries where it is the local custom to make a gratuity payment without regards to the service level provided. In such situations, a staff member on business related activities, may incur this type of expenditure upon their issued RMIT corporate credit card or seek reimbursement from RMIT.
As an example, in the USA it is considered inappropriate not to tip a service provider 10-15% of the bill or $1-2 per item of luggage for porterage.
No tip or gratuity will be reimbursed where it is additional to the service charge that has been automatically included in the total of the service.
Limit on tipping
Tipping expense should not exceed 10 percent of the total service amount.
Responsibilities and accountabilities
All staff members who authorise any tipping expenditure, are responsible and accountable for complying with this guideline.
Approval for tipping
- Central area: Branch Manager
- Portfolio: Head of School/Department
Note: Approval process can be sub delegated to an appropriate position within the organization by the responsible person noted above or their delegate[Next: Accountability]